Future challenges of capitec and south

NPN Background of Naspers Established in South Africa inNaspers Limited is a media, internet and entertainment powerhouse with a footprint in more than countries, and is one of the largest technology investors in the world today.

Candice Chaplin My wife banks with Capitec Bank. She was snatched away from Standard Bank by the year-old retail lender almost five years ago.

Today she is one of the 7. She tells me that four of her colleagues recently dumped their banks to start a love affair with Capitec after suffering through years of exorbitant banking fees. The index — compiled by Lafferty Group, a global banking advisory firm — rated quoted banks from 28 countries across the globe using indicators such as strategy, culture, customer satisfaction and executing brand promises to determine the quality of banks.

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Capitec ticked all the boxes. This is a remarkable achievement considering the economy is stagnant and possibly heading towards a recession. It is clear that hard-pressed consumers are in want of an affordable bank in these economically trying times.

Very few people will recall that Capitec underwent a metamorphosis from a microlender into a retail bank out of its headquarters in Stellenbosch, Western Cape. Capitec was born in in the middle of the lending crisis that led to the demise of second-tier banks such as Saambou, BoE, and Unifer, a microlender once owned by Absa Bank.

Capitec entered the market offering unsecured loans to low-income earners in urban and rural markets. On the back of its microlending business, it secured a banking licence to convert itself from a microlender to a retail bank. However, Capitec had to come up with an innovative, unique hook to lure customers away from traditional banks.

And so it positioned itself as a low-cost operator that made banking easier, faster and cheaper to low-income consumers.

Business model How did a start-up bank like Capitec manage to underprice its established rivals? Capitec went a step further to differentiate itself from its established rivals.

It offered just one transaction account — the Global One account — which customers utilise to save, transact and access credit. Customers pay the same fees on the account irrespective of their level of income and there is no discrimination against high-income earners paying more than low-income earners for the same services.

Even the ambience inside its outlets was different and refreshing. Capitec took the notion of a paperless bank to another level as customers did not have to fill in transactional forms.

There were no thick security glasses separating Capitec consultants from customers. This made interaction easier and friendlier as consultants tried to understand the needs of customers.

Middle-class customers Once Capitec started catching fire in the low-income, blue-collar market, it turned its attention to the customers with fatter wallets — the middle class.The People Shop Linking business and Talent Oﬃce: Fax: Mobile: - Chantal Kading Email: [email protected] Grant Gibbs, Executive Director, Hippo Roller, talks about a South African invention, the Hippo Roller, the early days of developing the product, getting it to market and promoting it in the s at a time when technology was prohibitive and internet not widely available.

About Us. IHS Markit is the leading source of information and insight in critical areas that shape today's business landscape. Customers around the world rely on us to address strategic and operational challenges. Capitec also recently surpassed the 5-million client mark by signing on about new clients per month.

These gains were made during the financially turbulent global recession, while Gerrie was COO of the company and manifested the Capitec vision in the every-day operations of the bank. In fact the latest AMPS data place Capitec on the fourth position with % market share ahead of Nedbank’s %.

But the AMPS are not a clean reflection of market share. Capitec said “Despite South Africa’s medium-term challenges, we remain excited about the . Youth Employment Services Learnerships at Sasol. Sasol is committed to supporting efforts aimed at building an inclusive South African economy.

One way in which to achieve this is through participation in the YES campaign (*YES is a business-led initiative supported by Government to.